New CarMax Survey Finds One in Six of Those Expecting a Tax Refund
Are Likely to Put it Toward Buying a Car
RICHMOND, Va.--(BUSINESS WIRE)--Mar. 18, 2014--
According to a new survey and infographic
released by CarMax,
Inc. (NYSE: KMX), the nation’s largest retailer of used cars, one in
four American adults say they plan to save (26 percent) or pay back debt
(25 percent) with their tax refund this year. Among those expecting a
refund, one in six (17 percent) are likely to use the money to shop for
a car. The survey explores the tax filing habits of Americans and how
they plan to spend their refund. Almost three in 10 people (29 percent)
are not expecting a refund this year.
Young Adults Most Likely to Spend Refund on Car
The online survey, conducted by Ipsos Public Affairs on behalf of
CarMax, reveals that among those who are expecting a refund, those under
the age of 35 (29 percent), parents (26 percent) and residents of the
South (22 percent) are particularly likely to put their tax refund
toward the purchase of a car this year. When it comes to putting their
reimbursement toward a large purchase like a home or car, parents are
twice as likely (23 percent) to say they have done so than are adults
without children in their household (11 percent).
“Historically, tax refund season has been a very busy time for CarMax,”
says Cliff Wood, executive vice president of stores at CarMax. “Buying a
car any time of the year is a big decision, and we work to make the
process fun and hassle-free so customers can focus on what matters most:
finding the perfect car for them.”
Midwest is Best at Filing Before Deadline
Midwesterners are most likely to say that they file their tax return in
advance of the deadline (89 percent), followed by people living in the
West (83 percent) and the Northeast (81 percent). In the South, 14
percent say that they file on April 15 or ask for an extension. Though
many have plans for how to use their refund, few spend it before they
actually have it in hand. Less than one in 10 (7 percent) say they have
ever spent their tax refund before receiving it, compared to eight in 10
(84 percent) who have not.
Men More Likely to Ask for Extension
Men (7 percent) are slightly more likely than women (4 percent) to
characterize their tax filing style as “needing an extension.” Unmarried
adults are twice as likely (7 percent) to describe themselves as
“needing an extension” compared to married adults (3 percent). Overall,
85 percent of American adults file taxes on time, submitting either in
February (45 percent) or March (40 percent).
Spending Habits Remain the Same Year Over Year
Plans for spending this year’s tax refund are similar to how respondents
say they have used their refund in the past. Roughly four in 10 have
paid debt (44 percent), saved it (40 percent) or used it on everyday
expenses, such as groceries, bills or gas (38 percent). One in five say
they have used it for travel (23 percent) or home improvements (21
percent), while one in seven (14 percent) have spent their tax refund on
something larger, such as a car or a house.
CarMax has more than 20 years of experience in helping consumers make an
informed car buying decision. Wood has provided five key tips on how to
best shop for a car during tax season:
Do your research: Start your search online by exploring
pictures, reviews and financing terms before you test drive. On
carmax.com, you can search more than 35,000 vehicles nationwide based
on your preferences.
Buy for quality: The biggest mistake people make when
purchasing a car is they buy for price – not for quality. Make sure
the vehicle has gone through a rigorous quality inspection.
Narrow your options: Select a few vehicles you want to test
drive in advance and visit a store where you can try out a variety of
makes and models all at one place.
Go somewhere you trust: Choose a retailer you trust to provide
a transparent and enjoyable car buying experience focused on your
needs. For example, sales consultants at CarMax are paid a fixed
commission (except in CA) no matter what car they sell, so they can
focus solely on helping you find the right car for you.
Ask questions: Ask your sales consultant as many questions as
you need so that you fully understand the terms of your agreement
before you sign any documents.
Additional Media: Infographic (www.carmax.com/taxtimeinfographic)
CarMax, a member of the FORTUNE 500 and the S&P 500, and one of the 2014
FORTUNE 100 Best Companies to Work For, is the nation’s largest retailer
of used cars. Headquartered in Richmond, Va., CarMax currently operates
132 used car superstores in 65 markets. The consumer offer features low,
no haggle prices, a broad selection of CarMax Quality Certified used
cars, and superior customer service. During the twelve months ended
February 28, 2013, the company retailed 447,728 used cars and sold
324,779 wholesale vehicles at our in-store auctions. For more
information, access the CarMax website at www.carmax.com.
Ipsos is a leading global survey-based market research company, owned
and managed by research professionals that helps interpret, simulate,
and anticipate the needs and responses of consumers, customers, and
citizens around the world. These are some of the findings of Ipsos polls
conducted March 3-4, 2014. For the survey, a national sample of 1,010
adults aged 18 and older from Ipsos’ U.S. online panel was interviewed
online. Weighting was then employed to balance demographics and ensure
that the sample's composition reflects that of the U.S. adult population
according to Census data and to provide results intended to approximate
the sample universe.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140318005984/en/
Source: CarMax, Inc.
PadillaCRT, (646) 218-6010
Casey Werderman, CarMax Public
Relations, (804) 747-0422, ext. 4773